As the Securities and Exchange Commission (SEC) conducts its study required under Section 914 of Dodd-Frank of whether it should designate a self-regulatory organization (SRO) to oversee advisors, the Investment Adviser Association (IAA) urged the SEC in a Tuesday letter to “maintain its role as the primary and direct regulator of the advisory industry.”
Section 914 of Dodd-Frank requires the SEC to “review and analyze the need for enhanced examination and enforcement resources for investment advisers.” Dodd-Frank specifically directs the SEC to consider the extent to which having Congress authorize the SEC to designate one or more self-regulatory organizations to augment the SEC’s efforts in overseeing investment advisors would improve the frequency of examinations, notes David Tittsworth, IAA’s executive director.